What Warehouses? Amazon’s Quarterly Message Is All Digital; “This past quarter, our top 10 selling items worldwide were all digital products – Kindles, Kindle Fire HDs, accessories and digital content”

July 25, 2013, 6:44 PM

What Warehouses? Amazon’s Quarterly Message Is All Digital

By Tom Gara

One interesting line from Amazon’s Jeff Bezos, announcing quarterly results today:

“We’re so grateful to our customers for their response to Kindle devices and our digital ecosystem. This past quarter, our top 10 selling items worldwide were all digital products – Kindles, Kindle Fire HDs, accessories and digital content,” You would expect something close to this — of the company’s ten best selling electronics items, five are Kindles. In its Movies & TV category, the top three are all streaming items from Amazon’s Instant Video service, as are eight of the top ten. So long, DVDs! Amazon had $15.7 billion in sales in the quarter, and while it didn’t make any money — it lost $7 million — growing sales by 22% is still pretty impressive for a company this size. That was helped along by some of the newer, less conventional parts of the company’s digital business — Amazon Web Services, the cloud computing business, was responsible for almost 15% of the growth in U.S. revenues. For another sense of where management’s priorities are — or at least where management wants to say its priorities are — take a look at the “Highlights” section of the earnings announcement. Of the 19 dot-pointed highlights, only one is devoted to the company’s historical business of online retailing — a mention of the launch of its marketplace in India. Four more talk about achievements in the Amazon Web Services business, and the rest — the other 14 — are about the Kindle and its digital content store, or Amazon’s wider digital media business.

About bambooinnovator
Kee Koon Boon (“KB”) is the co-founder and director of HERO Investment Management which provides specialized fund management and investment advisory services to the ARCHEA Asia HERO Innovators Fund (www.heroinnovator.com), the only Asian SMID-cap tech-focused fund in the industry. KB is an internationally featured investor rooted in the principles of value investing for over a decade as a fund manager and analyst in the Asian capital markets who started his career at a boutique hedge fund in Singapore where he was with the firm since 2002 and was also part of the core investment committee in significantly outperforming the index in the 10-year-plus-old flagship Asian fund. He was also the portfolio manager for Asia-Pacific equities at Korea’s largest mutual fund company. Prior to setting up the H.E.R.O. Innovators Fund, KB was the Chief Investment Officer & CEO of a Singapore Registered Fund Management Company (RFMC) where he is responsible for listed Asian equity investments. KB had taught accounting at the Singapore Management University (SMU) as a faculty member and also pioneered the 15-week course on Accounting Fraud in Asia as an official module at SMU. KB remains grateful and honored to be invited by Singapore’s financial regulator Monetary Authority of Singapore (MAS) to present to their top management team about implementing a world’s first fact-based forward-looking fraud detection framework to bring about benefits for the capital markets in Singapore and for the public and investment community. KB also served the community in sharing his insights in writing articles about value investing and corporate governance in the media that include Business Times, Straits Times, Jakarta Post, Manual of Ideas, Investopedia, TedXWallStreet. He had also presented in top investment, banking and finance conferences in America, Italy, Sydney, Cape Town, HK, China. He has trained CEOs, entrepreneurs, CFOs, management executives in business strategy & business model innovation in Singapore, HK and China.

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